The deal will allow Chevron to increase its Wheatstone area resource base.

What a gas: a Chevron petrol station in California. Credit: Getty Images

Chevron Australia has agreed to exchange its 16.7 per cent interest in the East Browse titles and 20 per cent interest in the West Browse titles for Shell Development Australia’s 33.3 per cent interest in the WA-205-P and WA-42-R blocks.

This move will give Chevron a 100 per cent interest in WA-205-P and WA-42-R. Chevron will retain its interests in the WA-274-P, WA-281-P and WA-410-P Browse basin exploration leases.

East Browse titles include WA30R, WA31R, WA32R, WAR2 and TR5, while West Browse titles include WA28R, WA29R and WA275P.

Shell will pay $450m in cash to Chevron. Following completion of the deal, subject to regulatory and other approvals, Shell will hold a 35 per cent interest in the West Browse titles and 25 per cent interest in the East Browse titles.

Andy Brown, upstream international director for Shell, said:

Shell is pleased to be growing its position in a major Australian gas resource and future Australian LNG supply project. This is a good deal not only because it aligns with Shell’s strategy of bigger direct stakes in key gas resources but because it also helps to simplify the ownership of the Browse gas fields.

The Browse gas fields are a key LNG development opportunity for Australia. We’re committed to continue working with Woodside (as operator), the other JV participants and key stakeholders to secure the best possible development plan for this important resource.

Melody Meyer, president of exploration and production for Chevron Asia Pacific, said:

Australia is a key focus area for Chevron, evidenced by our investment and development of the Gorgon and Wheatstone projects and strong exploration and appraisal programme. Consolidating our Carnarvon Basin position furthers our progress towards becoming a leading liquefied natural and domestic gas producer in Australia and Asia-Pacific.